TOKYO, March 19 Reuters The yen weakened and Japanese government bond yields fell after the Bank of Japan on Tuesday announced an exit from years of ultraeasy monetary policies, marking a historic shift from a decadeslong fight against deflation.

The Nikkei share average rose, reversing morning losses, following volatile trading immediately after the central bank said it was ending its negative interest rates policy and yield curve control YCC, as well as dropping purchases of risky assets, including exchangetraded funds ETFs.

The decision was widely expected after local and international media, including Reuters, had reported over the past week of a likely end to most or all of the BOJ39;s stimulus programmes at this policy meeting.

That resulted in 39;sellthefact39; trade in Japanese markets, analysts said.

The yen, in particular, appeared to have fallen victim, with domestic rates still also extremely low compared with the United States. The dollar jumped 0.76 to 150.285 yen as of 0748 GMT.

The Nikkei finished the day up 0.66 at 40,003.60, recovering the psychological 40,000 mark for the first time since hitting an alltime high at 40,472.11 on March 7.

The 10year JGB yield lost 3 basis points to 0.725.

Onemonth overnight index swaps surged to the highest since 2016, when YCC and negative rates were put in place.

Some dovish undertones in the BOJ39;s policy decision will keep bond yields under pressure, said Shoki Omori, chief Japan desk strategist at Mizuho…